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A Non-Compete Success Story

By James Edward Rubin

I recently defended an individual salesperson accused of violating a non-compete agreement. (The individual, the companies involved, and the result are confidential.) What I believe played a major role in the favorable result was establishing who can and who cannot be subject to a non-compete in Maryland. Here are two paragraphs (slightly modified) from the papers in the case:

Because non-compete agreements by their nature conflict with the ?natural and inherent? right of individuals to pursue their livelihoods and with the right of the ?general public . . . to have the energy, industry, skill and talents of all individuals freely offered upon the market,? they are closely scrutinized and narrowly enforced by Maryland's courts . . .

Furthermore, to be enforceable a non-compete agreement must protect a legitimate interest. With regard to salespeople generally the only legitimate interest is preventing a former employee from using a list of unique customers. Non-competition agreements are not enforceable against a relatively unskilled worker who does not actually solicit his or her former employer?s customers. . .

Full post as published by Maryland Employment Law on July 20, 2007 (boomark / email).